State pensioners being handed five payments worth £985 before Christmas

Energy customers are set for £985 payouts this winter to help them keep the heating on. State pensioners have been handed some reassurance over plunging temperatures and biting cold, as the weather begins to turn up and down the country.

Matthew Sheeran, a benefits expert at Money Wellness, said: “We help hundreds of people with problem debt daily who are missing out on money and support that they’re entitled to. There are several schemes available for households who are struggling with winter costs.

"And energy providers are now much more in tune with how they can support customers in financial difficulty. People shouldn’t be afraid or embarrassed to get help.” There are plenty of Department for Work and Pensions (DWP) schemes and payments on offer for households...

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People over State Pension age who no longer qualify for the Winter Fuel Payment could still be due a series of extra payments and energy bill help before the end of this year from the government and the Department for Work and Pensions (DWP).

Cold Weather Payment – £25

DWP’s Cold Weather Payments are an automatic bank top-up of £25, triggered to be paid to eligible households when the average temperature has been recorded as, or is forecast to be, zero degrees Celsius or below for seven consecutive days at the weather station linked to an eligible person’s postcode.

The £25 payments will be paid automatically to households receiving certain benefits including, Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Universal Credit and Support for Mortgage Interest.

Matthew said: “The Cold Weather Payment is triggered when the average temperature in your area falls below 0°C (32°F) for seven consecutive days between 1 November and 31 March. Eligible households get £25 for each cold spell. You might qualify for the cold weather payment if you receive certain benefits, such as universal or pension credit. You might also be eligible if you have a severe disability premium, a child under 5 living with you or a child with a disability.”

Emergency credit - £10

“If you have a prepayment meter fitted and can’t afford to top it up, you can use your emergency credit, usually worth around £10 for gas and £5 for electricity," Matthew said. “You can use your emergency credit when the balance on your prepaid meter drops to 50p or less. How you access it will depend on your supplier and the type of meter you have; some will automatically enable emergency credit, while others require you to accept it manually.

“But you’ll have to repay your emergency credit the next time you top up.”

Warm Home Discount – £150

The Warm Home Discount scheme is run by the Department for Energy Security and Net Zero (DESNZ) and officially opens today. You should receive a letter in the post starting from today - but for some people, it may take up until mid-December to be contacted.

You'll receive the £150 as a one-off discount that is applied directly to your electricity bill, as opposed to a bank payment, or if you have a traditional prepayment meter, you'll be given a top-up voucher. If you're a dual fuel customer, you can ask your energy supplier if it is possible to have the discount applied to your gas bill instead.

Matthew said: “The Warm Home Discount provides a one-off £150 discount on electricity bills for eligible households. This scheme supports people on a low income or those who receive the guarantee credit element of pension credit. If you’re eligible, your electricity supplier will apply the discount to your bill – it won’t be paid to you. You should receive a letter between October and December telling you when to expect your discount. If you think you’re eligible and haven’t heard anything by early January, call the Warm Home Discount helpline on 0800 030 9322.”

Household Support Fund – £500

The Government provided the Household Support Fund to local authorities for the period 1 October 2024 to 31 March 2025. Round six of the Household Support Fund launched in October 2024 and will run to Monday 31 March 2025. Round six of the scheme focuses on helping Salford residents with food, fuel and energy due to the cost of living crisis.

This scheme is discretionary and the funds will be used to support households in the most need. Matthew said: “In the Budget last week, the government announced it will provide £1bn to extend the Household Support Fund into 2025-26. The Household Support Fund is a grant provided by local councils to help households needing urgent financial assistance. This might take the form of cash or vouchers for heating bills, essential supplies and other living costs. Each council chooses how it allocates its part of the Household Support Fund, so the help you get will depend on where you live.”

Winter Fuel Payment – up to £300

If you live in England or Wales, you'll only be able to get a Winter Fuel Payment from now on if you're over state pension age and receiving one of the following benefits:

• Income Support

• Income-based Jobseeker's Allowance

• Income-related Employment and Support Allowance

• Pension Credit

• Universal Credit

How much you'll receive in Winter Fuel Payments won't be changing - they will still be worth up to £300, depending on your circumstances. “The Winter Fuel Payment provides a tax-free payment of between £100 and £300 to help older people keep warm during the colder months," Matthew said. “The government recently announced controversial changes to the qualifying criteria for the Winter Fuel Payment. From this winter, it will only be paid to those born before 26 September 1956 who receive pension credit. Anyone who doesn’t qualify for pension credit will no longer receive the payment.

“Nearly 800,000 people who are entitled to pension credit aren’t currently claiming it meaning they will also miss out on the Winter Fuel Payment. Use our benefits calculator to quickly check if you’re eligible.”